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Topic: Tax issues
| Author | Message |
| paula_vergara | Posted – 11/10/2007 1:58:15 PM | show profile Hi, I am trying to figure out the tax situation for freelance writing, and what exactly I need to claim. I have a regular job to pay the bills, and freelance on the side. I probably won't be making more than $1,000 this year from my freelance gigs (well, it's better than last year!) and I'm wondering if I need to claim this. I have never filed a tax form as "self employed" so I'm clueless as to how this works. Thanks. |
| nandy | Posted – 11/10/2007 2:08:29 PM | show profile Keep all your receipts for expenses that you incur doing your writing...postage, gas used and tolls paid driving to interviews. You can even deduct a portion of your internet/telephone costs. What you may end up doing is zeroing out your income with expenses. You file a Schedule C form with your regular taxes. On that you list the income and the deductions. If there's any money left over after the deductions, you add that to your regular tax sheet. It's really not too hard to do. You just have to keep good records and know what you are able to deduct. |
| paula_vergara | Posted – 11/10/2007 2:22:47 PM | show profile Thanks! Two more questions: 1) Is there a minimum amount that I have to make in order to be required to pay taxes on freelance income? 2) What if my expenses are more than my income? |
| Mag Girl | Posted – 11/10/2007 3:19:57 PM | show profile You definitely have to report ALL income - there is no loophole for income under a certain amount. |
| nandy | Posted – 11/11/2007 6:21:41 PM | show profile If your expenses are more than your income, you "zero out". That's OK for a few years, but you'd be better off making a small profit or the IRS will declare it a "hobby" and you will not be allowed to take the deductions. |
| nandy | Posted – 11/11/2007 6:22:43 PM | show profile If your expenses are more than your income, you "zero out". That's OK for a few years, but you'd be better off making a small profit or the IRS will declare it a "hobby" and you will not be allowed to take the deductions. |
| nandy | Posted – 11/12/2007 10:56:26 AM | show profile If your expenses are more than your income, that's when you "zero out." But you should consider making a small profit each year or the IRS will declare your side business a hobby, and you won't be able to take any of the deductions. |
